Telecom Share News

ADR REPORT: Shares Mostly Lower As Fed Outlook Weighs

By Matt Jarzemsky Of DOW JONES NEWSWIRES NEW YORK -(Dow Jones)- International companies trading in New York closed mostly lower Wednesday in line with the broader market, as the Federal Reserve issued a cautious economic outlook just days before it ends its asset-buying program. The Bank of New York index of ADRs fell 0.9% to 138.32, with the European index posting the largest decline amid concerns that the European consumer environment is showing signs of extreme stress. The European index lost 1.2% to 128.12. Dutch electronics company Royal Philips Electronics NV (PHG, PHIA.AE) was one of the day's largest decliners, falling 10% to $23.36 after warning that its profit would be hit by weak consumer demand in Western Europe. Meanwhile, HSBC lowered its stock-investment ratings on Lloyds Banking Group PLC (LYG, LLOY.LN), Barclays PLC (BCS, BARC.LN) and Royal Bank of Scotland Group PLC (RBS, RBS.LN) to neutral from overweight. HSBC said proposed regulatory changes from the Independent Commission on Banking could mean a hit of up to 10 billion pounds ($16.2 billion) for the three U.K. Banks. Lloyds fell 1.3% to $2.98 while Barclays lost 3.8% to $16.28. RBS closed 2.4% lower at $12.40. The Asian index fell 0.5% to 132.92 and the emerging markets index slid 0.5% to 324.48. KT Corp. (KT, 030200.SE) fell 2% to $18.16 after South Korea's telecommunications regulator said it will bar it and SK Telecom Co. (SKM, 017670.SE), the country's top two mobile carriers, from participating in a spectrum auction later this month due to fair competition concerns. SK Telecom slid 0.9% to $17.70. But China's Hanwha SolarOne Co. (HSOL) rose 12% to $5.89 as Collins Stewart raised its stock-investment rating on the company to buy from neutral, saying declining wafer prices will help the company improve its cost structure. Collins Stewart also initiated coverage of China Sunergy Co. (CSUN) with a buy rating, saying higher capacity of solar-cell component polysilicon has flattened the industry's cost curve and helped the company compete with other vendors. China Sunergy surged 20% to $2.18. Meanwhile, E-House (China) Holdings Ltd. (EJ) rose 9.8% to $8.93 after the company said Chairman Xin Zhou plans to buy $10 million in the company's American depositary shares over the next year. "Despite the challenging real estate market conditions we are experiencing now, I am confident in the strong fundamentals and long-term prospects of the real estate industry in China," Zhou said. The Latin American index was the lone gainer Wednesday, ending 0.3% higher at 396.36. Brazilian mining giant Vale SA (VALE, VALE5.BR) has given Argentine authorities an updated investment plan for its multi-billion dollar Rio Colorado potash mine project in an effort to address complaints that led the government to suspend work last week. Vale's shares edged up 8 cents to $30.74. -By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240; matthew.jarzemsky@dowjones.com